Cash and cash equivalents include accounts receivable expected to be collected within 90 days or less.

Question

Quizplus · Accepted Answer

Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, typically including currency on hand, demand deposits, and short-term investments with original maturities of three months or less. Accounts receivable are not considered cash equivalents because they represent amounts owed by customers and are not immediately liquid.

Cash and Cash Equivalents Include Accounts Receivable Expected to Be